Ace the 2025 NMLS UST Mortgage Test – Unlock Your Lending Superpowers!

Fannie Mae guidelines state that when evaluating comparable properties in an appraisal, there is a limit to the amount of gross adjustments that can be made. This maximum is established to ensure that the chosen comparables are indeed representative of the subject property without excessive adjustments that could indicate substantial differences in value.

The maximum percentage of the appraised value allowed for gross adjustments is set at 25%. This threshold helps maintain a level of consistency and reliability in appraisals, ensuring that the properties compared are truly similar in characteristics and market conditions. In doing so, Fannie Mae aims to safeguard against skewed valuations that might arise from using comparables that are not adequately aligned with the subject property's value factors.

Understanding this guideline is essential for mortgage professionals in order to adhere to the requirements set forth by Fannie Mae when preparing loan applications and valuations, thereby supporting sound lending practices.